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Top Businesses to Start in a Sluggish Economy

It may seem counterintuitive, but starting a business during a recession can reap some big rewards. In fact, studies indicate that more people are taking the entrepreneurial plunge despite the economic slowdown. Less competition for customers and lower marketing costs can make a sluggish economy one of the best times to start your business. Here are a few businesses that even thrive in tough times.

1. Debt Collection

It goes without saying that in tough economic times bills start to pile up and often go unpaid. While debt collection is not an especially pleasant business, it's one that generally does well during economic downturns. As an added bonus, you have the option of working out of your home as an independent contractor or working for a debt collection agency.

2. Healthcare Products

An aging population whose health is declining is going to purchase healthcare products and services—recession or not. And, with more health related products and services available than ever before, this is a business that is sure to thrive.

3. Job Search Agency

When people lose their jobs, they often turn to employment agencies or job search firms. If you are a people person with a lot of industry contacts and a knack for matching out-of-work employees with potential employers, then this type of business might be a good choice for you.

4. Mediator

In tough economic times, many people turn to mediators rather than attorneys to settle disputes simply because they are less expensive. If you're skilled at negotiating, this may be the business opportunity you are looking for.

5. Security Firm

Security firms are doing a booming business, but the security business is not just about security guards. It's also about performing security and background checks for employers.

6. Computer Repair

Computers are a fact of life and so is computer repair. The good news is that a computer repair business doesn't depend on whether the economy is good or bad. If you are the go-to person when a friend's computer goes bust, then the computer repair business might be a good fit. It's also possible to join a franchise operation like Geeks on Call.

7. Internet Marketer

Many people jump on the website bandwagon without really understanding internet marketing. After all, what good is a website if no one sees it? Internet marketing is becoming more and more important as people comparison shop and purchase items online. That's just one of the reasons why it's a good business when the economy goes south.

8. Web Entrepreneur

You don't have to be a computer geek to become a web entrepreneur; all you need is a good idea or product. You can create a website yourself or hire a web designer to do it for you.

9. Pawn Broker

Ok, not everyone is cut out to be a pawnbroker, but pawnshops are typically businesses that do well during recessions. A pawnbroker takes merchandise as collateral on a loan, albeit a loan with exorbitant interest rates.

10. Cosmetics Sales

This may seem like an odd business to start in a sluggish economy, but the truth is that cosmetics are an inexpensive way to let us feel good when times are not so good. After all, who doesn't want to look terrific?

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LegalZoom gladly provides services to citizens of the EU wishing to start a business or protect their intellectual property in the United States. Additional costs may apply.